Authority 1: EAC (Electricity Authority of Cyprus) as acting DSO, Technical Instruction KE1/33/2005

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1 A. INTERCONNECTION RULES Country: CYPRUS Eligible renewable /other technologies: PV Applicable sectors: All sectors Breakpoint for Small System (Simplified Rules): 20 kw Rules for net metering systems: yes If yes then Authority 1: EAC (Electricity Authority of Cyprus) as acting DSO, Technical Instruction KE1/33/2005 Limit on System Size/Overall Enrollment: No limit (single phase or multiple phase) Standard Interconnection Agreement: Yes Additional Insurance Requirements: Not allowed for systems eligible for net metering External Disconnect Required: Yes Rules for non net-metered DG: Not allowed for PV systems connected to the grid Date Enacted: 1/11/2005 Effective Date: 7/11/2005 Expiration Date: NA Summary: (max 1000 words) The initial application for interconnection of a PV system - integrated in an already electrified facility (house, etc)- is done by the PV producer to the EAC. The applications for PV systems have priority from the regular electricity applications and are investigated immediately. The position of the future PV metering unit is agreed at a site visit by the PV producer, the electrician and the EAC personnel. The metering unit for the PV system must be separate from the traditional metering unit for the electricity consumption of the facility. The two meters must be in the same location for ease of monitoring. The monitoring takes place every two months. After agreement on the location of the PV metering unit, EAC Commercial unit prepares the official PV system Interconnection rules which must be accepted by the PV producer in order for the process of interconnection to proceed further.

2 The Interconnection rules include the following: Description of the location size and other technical requirements that are required by the EAC for the installation of the single phase PV metering unit. All expenses for the construction and positioning of the PV metering unit are to be undertaken by the PV producer. The official EAC technical rules that apply for approval of a PV system interconnection to the distribution grid. The formal acceptance of the PV producer of the EAC rules for interconnection and the acceptance of the subsidy to be received from EAC. EAC will provide the agreed subsidy to the PV producer as long as the technical rules of interconnection are not violated. A contract will be signed for a 15 year duration that can extend to another 5 years if requested by the PV producer. The current subsidy by the EAC is set by CERA (Cyprus Energy Regulatory Authority) at 6.32c per kwh. This subsidy may be revised by CERA each year. On top of this subsidy, and as explained previously, the PV producer will be receiving subsidy by the Government payable to him by EAC (EAC will deduct this amount from its other payables to the Government). If the EAC subsidy is reduced by CERA during this 15 year period, the Government subsidy will be automatically adjusted so that the total amount of subsidy remains the same during the whole 15 year period. After agreement and signature of the Interconnection rules, a formal copy of the signed Interconnection rules is given to the PV producer so that he can include it in his application for subsidy from the Government (Ministry of Commerce, Industry and Tourism) under the Governmental schemes. Only after the initial approval for the Government subsidy, the PV producer may begin with the PV system implementation. The Ministry of Commerce, Industry and Tourism will be responsible for the supervision of the PV system implementation so that the final PV system will be in accordance to the requirements of the Governmental subsidy scheme. A license from the Department of Town Planning and Housing is also necessary for the PV system implementation unless a special waiver is provided. After the PV system is implemented, the PV produced must apply again to the EAC for the PV system final inspection for interconnection approval. In this application, the PV producer must also enclose the following documents: Initial approval by the Ministry of Commerce, Industry and Tourism for subsidy under the RES subsidy schemes License for the PV system installation by the Department of Town Planning and Housing (a license waiver can be provided in certain cases) All the technical standards for the specific PV system as published by the PV manufacturer Copy of the Declaration of Conformity of the manufacturer to the European standards for the equipment used in implementing the PV system During the inspection, EAC will ensure that all the technical rules for the Interconnection of PV system in the distribution grid apply. The PV system implementation must be in accordance to the European standards 73/23/EEC (Electrical Apparatus Low Voltage Directive), 89/336/EEC (Electromagnetic

3 compatibility) and 93/68/EEC (CE Marking) and also to be accompanied by the Declaration of Conformity by the PV manufacturer for the equipment to be used. The connection of the PV system to the distribution grid must be in accordance to the interconnection diagram (Figure 1). The technical rules are described in Section D of this questionnaire. In addition, some other technical rules are: No grounding of the inverter AC neutral while the PV system is synchronized to the grid. The area of responsibility of EAC ends just after the two metering units In the cases where the facility is not already electrified, then two separate applications to the EAC must be made. Two separate rules of Interconnection will be made one for the facility (e.g. house) and one for the PV system. The remaining procedure is then the same as explained above. Contact: Name: Ioannis Hadjipaschalis Address: 11, Amfipoleos str, 2025, Nicosia, Cyprus Phone : ioannishadjipashalis@eac.com.cy Web site: B. NET METERING RULES Country: CYPRUS Eligible renewable/other Technologies: PV Applicable Sectors: All sectors Limit on System Size: 20 kw Limit on overall Enrollment: No limit on overall enrollment Treatment of Net Excess: The amount of kwh produced and are fed to the Distribution grid are multiplied by the amount of 6.32c (see next section) which is the EAC subsidy per kwh. The same amount of kwh is also multiplied by the amount of 14.18c or 31.95c (depending on the subsidy option chosen from the schemes of the Government -Cyprus Institute of Energy CIE see Section C). The total amount (either 20.5c or 38.27c per kwh) is then sent by the EAC to the customer in the form of a checque to his name within 30 days from the date of the last monitoring of the PV meter. This checque, the customer can deposit in his banking account. EAC may also deposit the amount directly to the customer s selected banking account. EAC will deduct the amount that it paid to the PV producer on behalf of the Government from its payables to the Government each year.

4 Utilities Involved: EAC Interconnection Standards for Net Metering: Yes Authority 1: EAC as acting DSO Technical Instruction KE1/33/2005 Website: Date Enacted: 1/11/2005 Effective Date: 7/11/2005 Summary: (max 1000 words) In addition to the application and payment procedure already described in Section A above, the following rules apply to the net metering interconnection: The acting DSO (EAC) has the right to continuous and unlimited access to the metering units location within the PV producer s property. This is required in order to allow for the monitoring, repair and replacement of the metering units if necessary. The acting DSO has the right to randomly check the accuracy and the operation of the PV metering unit and also check the PV system s power factor. In case of power factor divergence from the range dictated in the technical interconnection rules, EAC will request corrective measures on behalf of the PV producer. No kwh estimations, based on previous values, are allowed to be made regarding the PV power supplied to the grid. EAC operators have to visit the metering unit once every two months and record the actual readings of the unit. However, if the metering unit stops recording, the PV power supply to the grid has to be estimated based on previous values In the case that either EAC or the PV producer have any doubts regarding the accuracy of the PV metering unit, these have to be expressed to one another in writing and the metering will be checked. In case a fault is found, each party has to pay back the amount for owed with the current daily interest rate. In case of delay of payment by the EAC to the PV producer, the payable amount will be charged with the current daily interest rate. Contact: Name: Ioannis Hadjipaschalis Address: 11, Amfipoleos str, 2025, Nicosia, Cyprus Phone: ioannishadjipashalis@eac.com.cy Web site:

5 C. FINANCIAL AND SUPPORTING SCHEMES Title: Grant Scheme for the Promotion of Renewable Energy Sources Utilization Country: CYPRUS Incentive type: Feed in Tariff/Investment subsidies Eligible renewable /other technologies: Photovoltaic, Small Wind Applicable sectors: Physical or legal entities that do not exercise economic activity Terms, budgets and requirements: see summary below System sizes: see summary below Authority: Cyprus Institute of Energy (under the Ministry of Commerce Industry and Tourism) Summary: The support Scheme for the promotion of RES for individuals and organisations to the extent that they do not exercise economic activity covers investments, regarding the electricity production, in the following main areas: Wind Energy Photovoltaic Wind energy category refers to small wind energy systems with generating capacity up to 30 kw. The subsidization for such systems reaches 55% of the eligible capital costs with a maximum grant of 51,258. Furthermore, EAC will pay 6.32 c/kwh produced and supplied into the electricity network. For small PV systems with generating capacity up to 20 kw connected to the network the total amount of subsidy will depend on the supplier s choice. He can either receive 55% subsidy on the investment cost with the maximum grant being 64,929 and a further c/kwh subsidy on the produced energy, or he can choose to receive increased subsidization on the produced energy of the order of c/kwh with no subsidy for the purchase and installation cost. EAC will contribute 6.32 c/kwh produced and supplied into the electricity network while the remaining subsidy (14.18 c/kwh in the first case and c/kwh in the second) will come from the Special RES Fund set up by the Government. Contact Name: Ioannis Hadjipaschalis Address: 11, Amfipoleos str, 2025, Nicosia, Cyprus Phone: ioannishadjipashalis@eac.com.cy Web site:

6 D. SAFETY AND POWER QUALITY REQUIREMENTS COUNTRY: (Cyprus) REQUIREMENT VALUE REFERENCE STANDARD OR GUIDE (including link) PROTECTION REQUIREMENTS Is an external accessible disconnecting switch mandatory? What is the acceptable range of AC voltage for operation of DER? YES (description: visible disconnecting switch with safety in the isolation position) 230V +-10% (after 31/12/2009) BS EN60947 EN Is monitoring of voltage of each phase required? What is the maximum allowed time for disconnection of DER in case of a voltage out of range event What is the acceptable range of frequency for operation of DER What is the maximum allowed time for disconnection of DER in a case of a frequency out of range event What is the minimum time for reconnection after a disconnection of DER Other protection requirements IMPACT ON GRID-POWER QUALITY What is the allowable variation of voltage at LV side of LV/MV transformer, due to DER connection What is the limit of harmonic current emissions of DER 230V +10%, -6% (up to 31/12/2009) No (EAC is allowed to randomly check the inverter ) 5 secs 50 Hz +-1% 5 secs 3 minutes Automatic disconnection of PV systems is mandatory +- 10% (after 31/12/ %, -6% (up to 31/12/2009) Harmonic % voltage distortion LV NA EN EN 50160

7 What is the limit of the voltage fluctuations and flicker for DER Requirements regarding power factor Other requirements for impact on grid-power quality PV SPECIFIC REQUIREMENTS Is an AC disconnecting switch mandatory for a PV plant For Wind Parks: P st =0.35 and P lt =0.35 For other DG: Frequency of flicker events: per minute, P st =0.7 and P lt =0.5 Frequency of flicker events: per minute, maximum allowed value is 3% Frequency of flicker events: <0.02 per minute, maximum allowed value is 5% The power factor of DG units connected to the distribution grid (if these DG units have inductive generators) must be 0.95 lagging to 1.00 leading. If the DG generators are synchronous then these must be operated with a power factor that is agreed with the DSO. Typically, these generators must operate with a power factor between 0.85 lagging and 0.95 leading. YES (with safety in the isolating position) IEC

8 What is the acceptable range for the settings of under-voltage disconnection What is the maximum allowed time for disconnection of a PV inverter in case of a voltage out of range event What is the acceptable range of settings for under- over frequency disconnection What is the maximum allowed time for disconnection of a PV inverter in case of a frequency out of range event What is the minimum time for reconnection after a disconnection of a PV inverter What is the limit of the total harmonic distortion of current of a PV inverter Is an isolation transformer required for a PV inverter What is the maximum allowable DC current injected to the grid Is any special protection required for transformerless inverters Is an anti-islanding protection for the PV inverter mandatory What method of anti-islanding protection is acceptable -10% (after 31/12/2009) -6% (up to 31/12/2009) 5 secs +-1% 5 secs 3 minutes No 5mA Overcurrent protection Fuses YES Under-frequency protection E. BEST PRACTICES Title: PV system at the EAC Headquarters in Nicosia, CYPRUS Project start and end: 2005 Location: Nicosia, CYPRUS Description This PV solar system of 88,6 kwp installed capacity is placed on the south side of the building and is connected to the electrical grid. Apart from the obvious use of the photovoltaic system which is of course electricity generation, the photovoltaic panels act as sunshade to the offices that are facing to the south. To maximize the power generation the photovoltaic panels are tilted downwards by 15%. The modules have been located with their longer side parallel to the building to avoid, as much as possible, the problems with partial shadows over the PV system.

9 The system includes 836 ISOFOTON photovoltaic modules I-106 made of monocrystalline silicon, of 106Wp each at 12V and 43 DC/AC transformerless inverters. 88,6kV photovoltaic system for electricity generation Photovoltaic system acting as sunshade Technical characteristics: see description above Financing: Financed by the EAC Results 1 ST year output (June 2005-June 2006): 81307kWh 2 nd year output (June 2006-June 2007): 93207kWh

10 Contacts Name: Ioannis Hadjipaschalis Address: 11, Amfipoleos str, 2025, Nicosia, Cyprus Phone: ioannishadjipashalis@eac.com.cy

11 Figure 1: Typrical circuit for the interconnection of PV system to the LV grid of the EAC